Gold Price Prediction – Prices Rebound Following Soft Claims Data
Gold prices whipsawed and moved higher, on Thursday, as the dollar eased slightly after continuing to run higher. US yields moved sideways and weighed on the dollar. The Labor Department reported that jobless claims rose more than expected. Trump was asked if he would commit to a peaceful transfer of power whatever the results, and he replied that he needed to wait and see.
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Technical analysis
Gold prices moved higher on Thursday after breaking down on Wednesday and are poised to test higher levels. Resistance is seen near the 10-day moving average at 1,925. Support is seen near the July lows at 1,779. The 10-day moving average crossed through the 50-day moving average which means a short-term downtrend is in place. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). Short-term momentum is negative as the fast stochastic recently generated a crossover sell signal. The current reading on the fast stochastic is 14, below the oversold trigger level of 20 which could foreshadow a correction.
Jobless Claims Rise More than Expected
US jobless claims rose more than expected to 870,000, according to the Labor Department. Expectations were for initial jobless claims to rise to 850,000, down slightly from the previous week’s 860,000. More than 6 million people a week filed during the peak of the layoffs in the spring, when Congress approved $600 a week in supplemental benefits. The supplemental benefits expired this summer.
This article was originally posted on FX Empire
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